Model Selection Form
A model selection form records which model portfolio or strategy an account is assigned to inside a managed account program. It names the model or the sleeve allocation, the manager or sponsor behind each sleeve, and any client restrictions that attach to the account. It goes to the program sponsor or the platform running the models, not to a regulator.
- Who handles it
- The advisor makes the election with the client and operations submits it to the sponsor or enters it on the platform. From that point the election has to agree with what the portfolio system actually trades and with what the client's investment policy statement says the account will hold.
- Filed through
- Program sponsor
- Applies to
- SEC-registered RIA, State-registered RIA, Dually registered
What the form asks for
- The account and registration the election applies to
- Model, strategy, or sleeve allocation selected, with target weights
- Manager or sponsor responsible for each sleeve
- Client restrictions, excluded holdings, and concentration limits
- Tax management or transition instructions for funding the model
- Program fee arrangement and how it is billed
- Advisor and client signatures, and the effective date
The work behind the filing
Reconcile the elected model against the one the account runs
The election says one model. The portfolio system holds whatever it has held since the last rebalance, funding delay, or manual override. Both records are internally consistent, so nobody compares them until a client asks why their account looks different from the strategy they picked. Caddi can compare the election against live holdings and surface the accounts that disagree.
Check the election against the client's stated policy
The model selection form and the investment policy statement are two documents describing the same account, written at different times by different people. A model whose allocation sits outside the bands the IPS commits to is a problem the firm created in writing. Caddi can read both and flag the contradiction before an examiner does.
Keep restrictions where the trading system can see them
A restriction written on an election form once tends to live only on that form. The account gets rebalanced by a system that never read it, and the excluded position comes back. Caddi can carry restrictions from the election into the systems of record and flag holdings that contradict them.
Questions
What is a model selection form?
A model selection form records which model portfolio or strategy an account is assigned to inside a managed account program, along with sleeve allocations, the managers responsible, client restrictions, and the program fee arrangement.
Is a model selection form filed with a regulator?
No. It goes to the program sponsor or the platform that runs the models, and the firm retains it as part of the client's file.
What usually goes wrong with model elections?
Three things, all of them record keeping rather than investing: the account drifts from the elected model and nobody compares the two, the election contradicts the account's investment policy statement, and a client restriction captured on the form never reaches the system that trades the account.
Can Caddi handle this paperwork end to end?
Caddi runs the work around it: pulling the client facts out of your CRM, plan, and document systems, producing the populated form, checking it against the client record before it goes out, routing it for signature, and writing the result back into every system that holds the same fact. A person reviews and submits. Caddi is not a custodian or a broker-dealer and does not act as one.
Related forms
The filing is the easy part
Caddi does not file forms. It runs the work around them: pulling the underlying data out of your portfolio, CRM, and document systems, reconciling it against the prior filing, and evidencing delivery. See it run on your own stack.
See the compliance specialistThis page describes what the form is and the work it creates. For requirements, deadlines, and whether any of it applies to your firm, see SEC: Investment adviser regulation and examination resources.